Banking plays a huge role in the business world. Without quality banking, businesses cannot purchase the capital they need to grow. As globalization has emerged as a major force, many businesses have started to notice and care more about international banking rules. Every country has a slightly different banking system that influences the economic growth of the country. Brazil is one of the fastest growing economies in the world, and their banking system plays a major role in that growth. Igor Cornelsen is a major player within the Brazilian business community, and recently he sat down with a major media outlet to discuss the Brazilian banking industry.
Brazil’s economy recently was in a major rough patch. The economy was at an all-time low at the end of 2014, and most people expected the banking industry to match that trend. To the shock of everyone, the two largest banks in Brazil both grew considerably. Both Banco Bradesco and Itau Unibanco had their shares increase in value at the end of the year. Banco Bradesco jumped by 28% and Itau jumped by 36%. These banks are still successful regardless of the economic storm, so what happened.
Igor credited the risk management teams at both banks. He stated that bankers are only lending to people that are truly worthy of credit. This lets the companies streamline costs and gives the bank the security they need. People with less desirable credit cannot acquire loans, which is great for the banks, but not great for the Brazilian economy. If you don’t have great credit, it is almost impossible for your to start a business. Igor recommends that the Brazilian government focus on reforms and austerity to get through this difficult time.
Many might wonder why they should consider the investing the Brazilian economy at all? Fortunately, Brazil has great natural resources and thus has great potential to grow in the future. With the Brazilian economy at a floor, now is the perfect time to invest.
The Brazilian economy is a great opportunity for investors and Igor Cornelsen recommends that people invest in Brazil and grow their wealth. Check him out on Wikidot, or read more about Igor from his Facebook feed.